How to file bankruptcy in Thunder Bay: when your financial obligations can no longer be met, this legal option enables you to get immediate protection from your creditors.
The process for a first time bankruptcy will normally take either nine or 21 months following the filing of an Assignment in Bankruptcy. For a second time bankruptcy, the period is extended to either 24 or 36 months. The minimum period of the bankruptcy will be dependent on your actual income and that of the household.
Who can file for bankruptcy?
You can file bankruptcy (or make a proposal) if you:
are not presently in bankruptcy
owe at least $1,000
are not able to meet your regular payments as they become due; or
would not be able to pay all of your debts if all of the assets you are not allowed to keep are sold
Your company, partnership, or business may also file bankruptcy or make a proposal if it meets the above requirements.
Your Bankruptcy Trustee will deal directly with your creditors and notify them of your bankruptcy in order to stop any wage garnishments or collection calls you are receiving.
Be aware that any unsecured creditor to whom you owe more than $1,000 could try to force you into bankruptcy. In this case, the creditor must prove that you have committed an act of bankruptcy, such as not paying your bills as they came due. The court reviews the facts and, if the application is successful, issues a bankruptcy order which places you in bankruptcy by the creditor.
The first thing you need to do is to call us. Our professionals at Grant Thornton can assist you every step of the way.
The Trustee will help you prepare a Statement of Affairs which lists all of your assets, creditors, income, expenses, and other pertinent information
After you file bankruptcy, most creditors are no longer able to pursue you for collection of their accounts
Your Trustee will deal directly with your creditors and notify them of your bankruptcy in order to immediately stop any wage garnishments or collection calls you are receiving.
You may be requested to attend a bankruptcy interview with the Official Receiver who is a government official
You will be required to attend two financial counselling sessions
If you have any assets which you will not be allowed to keep, you will be expected to help the Trustee sell them
You will report your income and expenses on a monthly basis to the Trustee. You may also be required to pay some money to the Trustee each month depending upon how much you earn, the size of your family and your circumstances. This payment is called your surplus payment
You will be automatically discharged from bankruptcy in nine months if this is your first bankruptcy, your surplus payment is less than $100 and there are no objections. If your surplus payments are $100 or greater, your discharge will be in 21 months. You will have no further obligations for the debts covered in your bankruptcy.
To get debt help or file bankruptcy in Thunder Bay, Dryden, Fort Frances or other areas of Northwestern Ontario, call us toll free at 310-8888 for a free, no obligation, confidential consultation.
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